Paymentus Holdings, Inc.
Paymentus Holdings, Inc. Fundamental Analysis
Paymentus Holdings, Inc. (PAY) shows moderate financial fundamentals with a PE ratio of 48.74, profit margin of 5.60%, and ROE of 12.67%. The company generates $1.2B in annual revenue with strong year-over-year growth of 41.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PAY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPAY demonstrates superior asset utilization.
Valuation Score
WeakPAY trades at a premium to fair value.
Growth Score
ModeratePAY shows steady but slowing expansion.
Financial Health Score
ExcellentPAY maintains a strong and stable balance sheet.
Profitability Score
WeakPAY struggles to sustain strong margins.
Key Financial Metrics
Is PAY Expensive or Cheap?
P/E Ratio
PAY trades at 48.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PAY's PEG of 4.68 indicates potential overvaluation.
Price to Book
The market values Paymentus Holdings, Inc. at 5.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.28 times EBITDA. This signals the market has high growth expectations.
How Well Does PAY Make Money?
Net Profit Margin
For every $100 in sales, Paymentus Holdings, Inc. keeps $5.60 as profit after all expenses.
Operating Margin
Core operations generate 6.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.67 in profit for every $100 of shareholder equity.
ROA
Paymentus Holdings, Inc. generates $10.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Paymentus Holdings, Inc. produces operating cash flow of $156.96M, showing steady but balanced cash generation.
Free Cash Flow
Paymentus Holdings, Inc. generates strong free cash flow of $147.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.18 in free cash annually.
FCF Yield
PAY converts 4.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PAY Stacks Against Its Sector Peers
| Metric | PAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.74 | 33.94 | Worse (Expensive) |
| ROE | 12.67% | 1002.00% | Weak |
| Net Margin | 5.60% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 4.46 | 5.74 | Strong Liquidity |
| ROA | 10.03% | -288341.00% (disorted) | Strong |
PAY outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Paymentus Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
249.24%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
204.60%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
243.25%
Industry Style: Growth, Innovation, High Beta
High Growth